Canadian fibreglass powerboat and rowboat manufacturer Rossiter Boats has filed for bankruptcy protection in Ontario court.
Grant Thornton Limited has been appointed as trustee of the estate of the bankrupt Windward Holdings Inc., operating as Rossiter Boats. In its notice of bankruptcy, Rossiter reported total liabilities of C$2.3m against inventory orders of C$1.9m. Challenges with cash flow associated with continued delays in engine deliveries, coupled with growing trade uncertainty between Canada and the US, is reported to have prompted investors to close the operation.
Established in 1974, Rossiter manufactured a range of fibreglass powerboats and rowboats for a network of dealers located throughout eastern North America.
The demands of a surging US domestic boat market, compounded by a significant volume of insurance claims related to last summer’s active hurricane season, has left outboard engine manufacturers under considerable pressure to supply product, particularly in the case of higher horsepower units. In spite of having a favourable asset-to-liability ratio, Rossiter investors feared that persistent engine delivery delays of up to two months would result in the cancelation of orders placed by dealers located in northern regions, where the boating season typically wraps up in mid-September.